The term Valuation describes the process of assessing a company's or asset's economical worth. This is done by evaluating the structure of capital, market value of assets and prospects of future earnings. Often Valuations are required when a business owner wants to prepare their company for sale, ensure financial viability towards potential investors or to establish value of shares. Valuations are often done by accountants, asset managers, certified valuers, business advisors, real estate agents or merger and acquisitions specialists.
The value of a business relies on several points:
Below are several Valuation methods: